The January Effect free essay sample

This paper takes a look at the trend of The January Effect on stock markets. This paper examines one of the most profound and best-known of all the psychological phenomena in the stock market: The January effect. It discusses this trend, asking if it is a real phenomena or simply a mass marketing campaign. It provides an extensive look at the psyche of the stock market junkie. Many graphs are displayed. From the paper: Nothing is a sure bet in the world of investing in stocks ? maybe even not death and certainly not taxes, as revelations about Enron have recently reminded us. And it is precisely this high level of insecurity that prompts people ? even against all possible rational reasons ? to look for patterns in the stock market that will help them invest, just as a person desperate to have a winning day at the track will bet on every fifth horse, or every horse wearing green and white, or every jockey whose name begins with K. We will write a custom essay sample on The January Effect or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page One essential difference between horse-racing and the stock market, however, is that the actions of those ?betting? ? i.e. buying and selling shares ? can have a real effect on the end result.